5 Golden Rules of Instant Personal Loan Repayment

Customers are opting for a quick personal loan as an easy solution to do away with their short-term financial crunch. However, borrowers stay under constant pressure to repay their loan amount once it gets sanctioned.

No one wants to stay under continuous monthly obligation. Here are the useful tips to repay the instant personal loan without many hurdles:

Take only what you need

The thumb rule of smart repayment is to assess the loan amount required and apply for it. Leading NBFCs provide a substantial fund that can range up to Rs.25 Lakh.

However, instead of applying for a high amount, estimate the loan amount required as per the financial requirements. This will help a borrower to reduce the loan EMIs. An investment thumb rule to follow, personal loan EMIs should not exceed more than 10% of the net monthly income of the borrower.

On-time EMI payments

Ensure regular and timely payment to clear off the EMIs of a quick personal loan. It will also boost his credit score in the long run. A good credit report signifies a borrower’s sound financial profile and repayment capability. This, in turn, helps him to fetch other loans in the future without any hassles.

A short loan tenure

A borrower must choose a tenure that fits his needs. Lending institutions provide quick personal loan tenures varying between 12 months and 60 months. Usually, the longer the tenure, lower is the EMI.

But, opting for the shortest possible tenure helps the debtor to avoid paying a higher rate of interest and save up a lot of money.

Opt for part-pre payment facility

Part pre-payment facility allows a borrower to save a significant amount of the total interest on the loan amount. For instance, a debtor can choose to repay the loan early when he has surplus funds. This helps the borrower to cut down on the EMIs while also improving their credit score.

Use EMI calculator

With the help of an personal loan EMI calculator, a borrower can calculate their EMIs for a particular amount and tenure respectively. However, a loan seeker must use this online tool to make a pre-plan of repayment of the loan prior personal loan online apply.

Most of the NBFCs are providing personal loans with a competitive rate of interest, making repayment easier and effortless. They also provide customised pre-approved offers on a personal loan, business loan, home loan and a host of other financial products and services.

This scheme saves consumers’ time round the clock owing to the simple steps. You can check your pre-approved offer by entering a few pieces of essential information on their website.

Few Essentials to Consider While Applying for a Personal Loan

Loan seekers must furnish few essential documents to enjoy a hassle-free personal loan application process. He needs to give:

KYC documents

Employee ID card

Salary slips of the prior two months of application

Salary account statements of the last three months

Post verification of these documents a loan seeker can avail the loan amount within 24 hours. However, one must make sure to meet these following easy-to qualify personal loan eligibility criteria:

The borrower must be between 23 and 58 years of age and has to hold Indian citizenship.

He also needs to be a salaried employee in an MNC or a public/private sector.

So, understand this fine print and apply for a quick personal loan for a straight-up financial solution. Create a draft and plan the repayment well in advance. Pay your EMIs on time. Go for a part pre-payment when you have extra cash in hand.